THE BASICS OF

MARKETING
WEEK 2

GEORGE MICHAEL GOZON, LPT, MBA

Course Facilitator, Advertising
Email: gozon.george@faculty.mbc.edu.ph
FB Messenger: https://m.me/gozon14
Contact Number: 09393721497
 OBJECTIVES:

1. Define Marketing
2. Enumerate and explain the different core marketing
concepts
3. Define market segmentation
4. Enumerate and discuss the three ways of segmenting a
market
5. Define target market
6. Understanding the meaning and components of marketing
mix
7. Define marketing management
8. Enumerate and explain the five marketing management
philosophies
9. Realize the importance and understand the applications of
social responsibility in marketing
MARKETING
 MARKETING

• Is a social and managerial process by which

individuals and groups obtain what they need and
want through creating and exchanging products
and value with others (Kotler & Armstrong, 2008)
• The heart of your business success lies in its
marketing. Most aspects of your business depend
on successful marketing. The overall marketing
umbrella covers advertising, public relations,
promotions and sales.
• Form of communication between you and your
customer with the goal of selling your product or
service to them
 CORE MARKETING CONCEPTS

• Needs, Wants and Demands

• Products
• Value, Satisfaction and Quality
• Exchange, Transactions and Relationships
• Markets
 NEEDS, WANTS AND DEMANDS

Needs – states of felt deprivation, personal

requirements that motivate behavior and things the
people cannot live without like food, clothing, and
shelter.
Wants – These are needs translated into specific
satisfiers that may differ from person to person
*All people need food to survive but different people
may want different kinds of food when they are
hungry.
Ex: A Chinese may want noodles; an American may
want hamburger and fries; a Pinoy may want tapsilog.
 NEEDS, WANTS AND DEMANDS

Demands – When backed by purchasing power, or

the ability to buy, wants become demand.

Ex: Mr. Ceballos wants a Mercedez Benz.

* There can only be a demand for the Mercedez
Benz if Mr. Ceballos has the ability to buy the car.
Otherwise, it is merely a want.
 PRODUCTS

Products – is anything offered for sale to satisfy a

need or want.
Goods – tangible products
Services – intangible products

Marketing myopia – too much focus on the product

to the point of losing sight of underlying customer
needs.
MARKETING MYOPIA
VALUE, SATISFACTION AND QUALITY

Customer Value – a factor in deciding which product to

buy and where to buy.
- Is the difference between the value of buying, owning
and using the product and the cost of the product.
*Positive and Negative Customer Value

Customer Satisfaction – refers to the difference between

the buyer’s expectation and the perceived performance
of the product.
*If the product performs less than expected = Dissatisfied
*If the product performs as expected = Satisfied Customer
VALUE, SATISFACTION AND QUALITY

Quality – is what the customer says it is.

- Depends on what satisfies the customer; it hinges on
what make consumers buy.

Total Quality Management (TQM)

- Programs pertaining to the continuous
improvement of the company products, services
and marketing processes.
 EXCHANGE, TRANSACTIONS, AND
RELATIONSHIPS
Exchange – Is the act of obtaining a desired object
by offering something in return.
a. There must be at least two parties to the
exchange
b. Each party must have something that the other
party needs or wants
c. Each party must want to deal with the other party
d. Each party must have the freedom to accept or
reject the other party’s offer.
e. Each party must be able to communicate with
the other party.
 EXCHANGE, TRANSACTIONS, AND
RELATIONSHIPS
Transaction – an exchange or trade of values
between two parties, measures the number of
exchanges that takes place.
*One party gives something of value (X) to the other
party, who, in turn, gives another thing of value (Y) to
the first party.

Relationship Marketing – treats each transaction with

much value and appreciation.
• Instead of building short-term transactions,
marketers build long term relationships with valued
customers, distributors, suppliers and dealers.
 MARKETS

Market – refers to a set of actual and potential buyers

of a product who have a common need or want
that can be satisfied through exchange.
• Demographic market – refers to customer bound by
similar demographic characteristics.
Ex: Age, Gender, Income, Geographic, Product
Target Market – The chosen market segment
 Why is it
important for a
business to
identify a target
market?
 MARKET SEGMENTATION

– The process of
breaking down
large market into
smaller
manageable
units.
 MARKETING MIX

Success in marketing is determined by four equally

important factors that are collectively known as the
marketing mix.

4P’S of Marketing:

PRODUCT, PRICE, PLACE,PROMOTION

A high quality, top performing product, reasonable

price, convenient and accessible place backed by
intensive promotion spell MAREKETING SUCCESS.
 MARKETING MANAGEMENT
PHILOSOPHIES
• PRODUCTION CONCEPT
- This concept holds that given a wide array of
products in the market, consumers will prefer to buy
products that are widely available and highly
affordable.
- In this concept, the primary factors affecting the
decision to buy are place of distribution
(availability) and price (affordability).
 MARKETING MANAGEMENT
PHILOSOPHIES
• PRODUCT CONCEPT
- This concept holds that consumers favor products
that offer the best quality, performance and
innovative features.
 MARKETING MANAGEMENT
PHILOSOPHIES
• SELLING CONCEPT
- This concept holds that consumers will not buy
enough of the company’s products unless the
company undertakes an extensive and large-scale
selling and promotional effort.
- Consumers need a lot of coaxing, persuasion, and
motivation to buy the company’s products.
 MARKETING MANAGEMENT
PHILOSOPHIES
• MARKETING CONCEPT
- This concept holds that achieving the goals of an
organization depends on knowing the needs and
wants of the target market and delivering the
desired satisfaction more effectively and efficiently
than others.
- The focus would be the consumer needs and wants
and the competition.
- Market focused or customer-driven marketing
effort.
 MARKETING MANAGEMENT
PHILOSOPHIES
• SOCIETAL MARKETING CONCEPT
- This concept holds that organizations must not only
study and satisfy the customer’s needs and wants
but also deliver superior value in a way that
maintains or improves the customer’s as well as the
society’s well being.
 MARKETING MANAGEMENT

“Is the analysis, planning, implementation and

control of programs designed to create, build and
maintain beneficial exchanges with target buyers for
the purpose of achieving organizational objectives.”

-Kotler & Armstrong, 2008

 SOCIAL RESPONSIBILITY IN
MARKETING
• The responsibility that companies have towards
society at large, in particular, to conduct their
activities and use their profits in ways that are of
benefit to society.

SOCIETY
(Human Welfare)

CUSTOMERS COMPANY
(Satisfaction of needs and wants) (Profits)
 APPLICATIONS OF SOCIAL
RESPONSIBILITY TO THE
MARKETING MIX
1. PRODUCT/SERVICE

• Offering products/services of superior quality and

value.
• Preferring the use of locally sourced materials to
imports
• Ensuring environmental protection and preservation
in waste disposal.
• Considering the effects of product/service to public
health, safety, and morals.
 APPLICATIONS OF SOCIAL
RESPONSIBILITY TO THE
MARKETING MIX
2. PRICE

• Offering products at reasonable and affordable

prices.
• Providing a reasonable return on investments
• Setting costs at reasonable levels without sacrificing
quality
• Setting reasonable markups
 APPLICATIONS OF SOCIAL
RESPONSIBILITY TO THE
MARKETING MIX
3. PLACE

• Ensuring wide availability of the product/service

• Treating and paying the sales force fairly and
competitively
• Considering availability
• Ensuring prompt deliveries at reasonable cost
 APPLICATIONS OF SOCIAL
RESPONSIBILITY TO THE
MARKETING MIX
4. PROMOTION

• Making promises that you can keep

• Adhering to truth in advertising
• Sponsoring activities beneficial to the society and
the community
• Ensuring fair and healthy competition
W2_ASYNC – ASSIGNMENT: THE BASICS
OF MARKETING
• Choose a product or service that you purchase
frequently. Using each of the market segmentation
categories (Geography, Demographics,
Psychographics & Behavioral) develop a customer
profile for the product.